The Role of an ERP Solution in the Energy Industry

Oil and gas operations are highly complex and costly and have a deep impact on the world’s economy. Because of this complexity, companies within this industry need enterprise management software that can easily integrate into business processes and across different departments and modules. Those areas could include procurement, inventory control, research, production, finance, distribution, and delivery. To continually improve these unique departments of an energy company and increase overall operational effectiveness, the industry is stressing the importance for energy ERP software solutions that can support and manage operations more now than ever.

Enterprise Resource Planning (ERP) Software for the Energy Industry

Blog_9.11.17_graphic2ERP systems play a critical role in standardizing business processes for oil & gas organizations. This is especially required as the oil & gas industry has enormous units scattered geographically with varied supply chain demands and expanded competition. Modern ERP systems, like Microsoft Dynamics 365 for Finance & Operations, can be tailored to the energy industry to provide all the essential techniques to customize these functions so it best fits into businesses and processes. However, the intent of business standardization is not just about cost savings, but it is also about the benefit of flexibility being added to the business by allowing quick movement and adjustments of workload in offices.

The Energy Industry’s Need for an ERP Solution

It’s pretty well known that the oil & gas industry is an expensive enterprise. And oil & gas ERP solutions are an important part of the industry to develop and improve the production and management of oil and gas.

Here are some of the key advantages of adopting ERP software into the oil and gas segment:

  • Easy incorporation into other applications
    Oil & gas ERP software is designed to easily integrate with other third-party applications, so all previous and current data does not get lost. Such a solution helps a company efficiently manage its resources and the overall financial structure. As a result, the company is always at a better position to deliver productivity and meet deadlines.

  • Efficient management of different projects
    ERP software also allows companies to efficiently manage the different aspects of their offshore and onshore projects. These may include product procurement, inter-department communication, finance, project schedules, and resources. Effective project management ultimately helps companies to complete their projects on time and within the set budget.

  • Effective management of project risks
    Oil & gas companies that implement an ERP solution can easily identify the trends and potential risks involved in projects well in advance. Therefore, they can also foresee the success or failure of a project.

  • Simplify the complex projects
    International projects and various joint ventures are an important part of the energy producing industry. With robust ERP software, this industry can keep track of various business details including currency exchange, management of finance, and observance of international regulations.
  • Aids with new employee training
    When new engineers are hired and maybe potentially replacing retiring personnel, ERP systems can be used to ensure that all the critical and technical information is passed on to the new hires. It can be used to integrate the new recruits into the entire energy exploration, production, and monitoring process.

  • Control costs
    With ERP solution applications like, EnergyCONNECT Authorization for Expenditure, your business can set up and control capital expenditures by measuring actual against budgeted costs on both a gross and net basis.

  • Optimize oilfield operations
    With a modern ERP solution, you can easily identify the trends and potential risks involved in your entire oilfield processes. Better manage your oilfield services and rentals with the EnergyCONNECT Oilfield Rentals solution. From allowing you to better negotiate rental rates to providing feedback to vendors on equipment performance.

One of the complexities of the oil and gas industry is managing the accounting and communication between multiple landowners. By integrating EnergyCONNECT Joint Venture Accounting into your system, you can unify project management, budgets, and costs with your corporate financials from initial drilling through to production. You can more effectively invoice and pay your partners, manage your cost centers, control expenditures, and drive efficiency into your business processes.

By implementing a modern energy ERP solution technology tailored to the oil and gas industry, like EnergyCONNECT, energy companies can experience powerful benefits including growth of customer relationships, flexible business reactions, and real-time data.

If your organization is ready to gain a competitive edge, contact us so our team can evaluate your business and begin the steps to implementing a new way to manage your oil & gas operations.

Author: Curtis Payne, Solution Consultant

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